What is DAC7 Directive
The EU Directive known as DAC7, implemented in Germany by the Platforms Tax transparency Act (PStTG), requires action by eBay and its EU-resident sellers starting 2023. eBay is legally required to report transaction data of its users to tax authorities under certain circumstances. This is what you need to know about it.
Operators of digital platforms in the European Union, for example online marketplaces such as eBay, are legally obliged to comply with rules from the EU Tax Directive known as DAC7. Because eBay GmbH as your online marketplace provider has its registered office in Germany, the German implementation of the DAC7 Directive, the Platform Tax Transparency Act (PStTG), applies.
If you reach sales volumes or value defined by DAC7 within a calendar year, eBay has to report certain personal and transactional data of its users to the relevant tax authority once a year.
Your data will be reported if:
The total amount of your consideration equals the full amount available for you to receive for your sales transactions, including any shipping costs and VAT that you may receive. Shipping amounts paid to eBay, VAT collected and remitted by eBay, VAT charged on fees, and amounts deducted by eBay for fees, coupons, cancelled or deleted orders, and returns are excluded from the calculation.
Reports to the tax authority are made annually in January for the previous year. The first reports will be filed in January 2024.
If we report any of your data to the tax authorities for the relevant period, we will provide you a copy of the information for your review.
DAC7/PStTG does not change your tax obligations. It only addresses the question of whether eBay is obliged to report your data. The introduction of DAC7/PStTG does not change the requirement that you remain responsible for clarifying whether your eBay sales are subject to tax, and, if applicable, complying with all relevant reporting obligations that may arise from your activities on eBay. We recommend that you consult a tax advisor if you have any questions about your tax obligations.
Reporting data
Under DAC7, a platform operator is obligated to report the information via the tax authority of the platform operator’s Member State of residence. For eBay GmbH, this is the German Federal Central Tax Office (BZSt). eBay will report the respective information to the German tax authorities for all sellers residing in the EU who have relevant activity during the reporting year. If you reside in another EU country, the German tax authorities will share your information with the relevant tax authorities in your Member State of residence.
The following information will be shared with the tax authorities:
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** A permanent establishment is generally a fixed place of business in another European Union Member State (such as the place of business management; branches; offices; repositories; a manufacturing base or workshop, purchasing offices or sales outlets) where you or your agent sell items on eBay. If you are unsure, please reach out to a tax advisor.
Data protection
We protect your personal data through leading edge technical and organisational security measures to minimise risks associated with data loss, misuse, unauthorised access and unauthorised disclosure and alteration. To this end we use firewalls and data encryption, for example, as well as physical access restrictions for our datacenters and authorisation controls for data access. We also recommend you enable 2-step verification on your eBay account. We’ll give you ongoing visibility into any information we collect and the ability to easily update your preferences at any time. You can find further information on our data security in our User Privacy Notice.
Providing your Tax Identification Number (TIN) / place of birth
Due to the PStTG (DAC7 Directive) rules, as part of the reportable data eBay is legally required to collect your Tax Identification Number (TIN) or place of birth if you are an individual and don't have a TIN.
If your tax identification number is not stored in your eBay account yet, you will see a banner in your seller dashboard once you initially reach €2,000 in consideration or complete 30 transactions. You will also receive an email asking you to provide your tax identification number.
Below you will find information on the format and where to find your tax identification number.
Bulgaria
| Bulgaria | Individuals (includes sole traders) | Legal entities |
|---|---|---|
| Name | Unified Civil Number (UCN) | Unified Identification Code (UIC) or Unified Identification Code of BULSTAT |
| Format | 10 digits | 9 digits |
| Where can I find it |
| Entity’s TIN can be found in official certificates issued by the National Revenue Agency or Registry Agency. BULSTAT registry https://www.registryagency.bg/bg/registri/registar-bulstat/ or https://portal.registryagency.bg/. |
Croatia
| Croatia | Individuals (includes sole traders) | Legal entities |
|---|---|---|
| Name | Osobni identifikacijski broj (OIB) | Osobni identifikacijski broj (OIB) |
| Format | 11 digits | 11 digits |
| Where can I find it | Personal identification number appears on the Certificate of personal identification number, personal ID that is issued from 10th June 2013, driving licence that is issued from 1st July 2013, biometric passports that are issued from 30th June 2009, health card and on every return and other submissions on tax, administrative procedures and payment operations.
Other documents:
| For businesses, they can be found on invoices, company registration documents, certificates etc.
Holders of a number are required to use the personal identification number assigned to them:
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Cyprus
| Cyprus | Individuals (includes sole traders) | Legal entities |
|---|---|---|
| Name | Tax Identification Code (T.I.N). In Greek: Κωδικός Ταυτότητας Φορολογούμενου | Tax Identification Code (T.I.N). In Greek: Κωδικός Ταυτότητας Φορολογούμενου |
| Format | 8 digits + 1 letter | 8 digits + 1 letter |
| Where can I find it |
| You can find your TIN on the TIN certificate issued by the Tax Department upon request by the taxpayer. |
Czech Republic
| Czech Republic | Individuals (includes sole traders) | Legal entities |
|---|---|---|
| Name | Personal number (rodné číslo), daňové identifikační číslo (DIČ) | Registration number (Identifikační číslo organizace — IČO), taxpayer identification number Tax ID (Daňové identifikační číslo — DIČ) |
| Format | 9 or 10 digits | CZ + 8 to 10 digits |
| Where can I find it | TINs or personal numbers are reported on the following official documents of identification:
| IČO: ARES system https://wwwinfo.mfcr.cz/ares/ares_es.html.cz. DIČ: tax returns, other submissions to the tax authorities, commercial documents (commercial contracts, invoices, orders, etc.). |
Denmark
| Denmark | Individuals (includes sole traders) | Legal entities |
|---|---|---|
| Name | CPR-number | CVR number/SE number |
| Format | 10 digits | 8 digits |
| Where can I find it | TINs are reported on the following official documents of identification:
| You can find your CVR number/SE number on the Registration certificate The CVR or SE number appears from the registration certificate among with the different areas the company is registered for (VAT, excise etc.) according to the Danish tax- and excise laws. |
Estonia
| Estonia | Individuals (includes sole traders) | Legal entities |
|---|---|---|
| Name | Isikukood | Registration code |
| Format | 11 digits | 8 digits |
| Where can I find it | TINs are reported on the following official documents of identification:
| All legal persons are assigned a unique registration code (TIN for legal persons) either from the commercial register (companies and sole proprietors), from the state register of state and local governmental authorities (legal persons in public law) or from the non-profit associations and foundations register. |
Finland
| Finland | Individuals (includes sole traders) | Legal entities |
|---|---|---|
| Name | Finnish Social Security number | Business Identity Code (Business ID) |
| Format | 6 digits + (+ or - or “A”) + 3 digits + 1 digit or letter | 7 digits + “-” + 1 digit |
| Where can I find it | TINs are reported on the following official documents of identification:
| You can find the TIN using the link below after providing the business name or registration number: https://ytj.fi/. |
Greece
| Greece | Individuals (includes sole traders) | Legal entities |
|---|---|---|
| Name | Tax Identification Number: AFM (Arithmos Forologikou Mitroou) | CPR |
| Format | 9 digits | 9 digits |
| Where can I find it | TINs are not reported on official documents of identification, but they can be found on:
| You can find your CPR on the “Certification of issued TIN”. |
Hungary
| Hungary | Individuals (includes sole traders) | Legal entities |
|---|---|---|
| Name | Adóazonosító jel | Adószám |
| Format | 10 digits | 11 digits |
| Where can I find it | TINs for individuals are not reported on official documents of identification but they can be found on the Hungarian TIN card. | You can find your Adószám on the Extract of the Companies Register as well as on the Adószám allocation letter from the authorities. |
Latvia
| Latvia | Individuals (includes sole traders) | Legal entities |
|---|---|---|
| Name | Nodokļu maksātāja identifikācijas numurs (NMIN) | Nodokļu maksātāja identifikācijas numurs (TIN) |
| Format | 11 digits | 9000 + 7 digits4000 + 7 digits5000 + 7 digits |
| Where can I find it | TINs are reported on the following official documents of identification:
| You can find your TIN through business documents such as company registration, tax declarations, invoices or any correspondence with Latvian Tax Authority. |
Lithuania
| Lithuania | Individuals (includes sole traders) | Legal entities |
|---|---|---|
| Name | Asmens kodas | Tax Payer Identification Number |
| Format | 11 digits | 9 digits or 10 digits |
| Where can I find it | TINs are reported on the following official documents of identification:
| The TIN is the same as the “company code” assigned by the Register of Legal Entities. The Stage Tax Inspectorate assigns a different taxpayer's registry number for permanent establishments. The TIN can also be found on your Tax Return. |
Luxembourg
| Luxembourg | Individuals (includes sole traders) | Legal entities |
|---|---|---|
| Name | Numéro d’identification fiscale (NIF) | National Identifier |
| Format | 13 digits | 11 digits |
| Where can I find it | TIN can be found on the social security card. | You can find your National Identifier on the national identifier allocation letter from the Administration des contributions directes (Administration of direct contributions) or latest tax assessments. |
Malta
| Malta | Individuals (includes sole traders) | Legal entities |
|---|---|---|
| Name | Tax Identification Number (TIN) | Reference number |
| Format | 8 characters:- 7 digits- 1 letter (M, G, A, P, L, H, B, Z) | 9 digits |
| Where can I find it | TINs are reported on the following official documents of identification:
| You can find your reference number on your Tax Return. |
Portugal
| Portugal | Individuals (includes sole traders) | Legal entities |
|---|---|---|
| Name | Número de identificação fiscal (NIF) | NIFNumero FiscalNúmero de identificação fiscal |
| Format | 9 digits | 9 digits |
| Where can I find it | TINs can be found in specific TIN cards issued by the Portuguese Tax Administration and on the Citizen Card, which is the official identity card. |
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Romania
| Romania | Individuals (includes sole traders) | Legal entities |
|---|---|---|
| Name | Personal Identification Number (CNP) | Unique registration number (CUI) |
| Format | 13 digits | 2 digits to 10 digits |
| Where can I find it | TINs are reported on the following official documents (of identification):
| Certificate of Incorporation:
The Ministry issues a copy or a certified copy Certificate of Incorporation certifying that a company is incorporated under the Company Act and:
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Slovakia
| Slovakia | Individuals (includes sole traders) | Legal entities |
|---|---|---|
| Name | Personal number (rodné číslo), daňové identifikačné číslo (DIČ) | DIČ — Daňové identifikačné číslo |
| Format | 9 or 10 digits | 10 digits |
| Where can I find it | Personal numbers are reported on the following official documents of identification:
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Slovenia
| Slovenia | Individuals (includes sole traders) | Legal entities |
|---|---|---|
| Name | SI tax number | SI tax number |
| Format | 8 digits | 8 digits |
| Where can I find it | TINs are not reported on official documents of identification, but they can be found on:
| You can find your TIN on the Certificate about the entry into the tax register or Certificate of residence. |
Sweden
| Sweden | Individuals (includes sole traders) | Legal entities |
|---|---|---|
| Name | Skatteregistreringsnummer | Business Registration Number, Organisations- nummer, Company Registration Number, Organisation number |
| Format | 10 digits | 10 digits |
| Where can I find it | TINs are reported on the following official documents of identification:
| All legal entities that are resident in Sweden are automatically assigned a TIN. You can find the TIN using the link below after providing the business name or registration number https://foretagsinfo.bolagsverket.se/sok-foretagsinformation-web/foretag. |
If for some reason you do not have a TIN, you may be able to apply for one. For more information on how to apply for a TIN, please reach out to local tax authorities or a tax advisor.
If you are required to provide a TIN but don’t provide it, your account may be subject to payout holds or restrictions on selling privileges.
Tip:
Please be aware that the TIN is different to the VAT Identification Number. Please refer to the above section as to where you can find your TIN.
What sellers should know
eBay will share your data with the tax authorities when in a calendar year your sales reach €2,000 or more, or you have 30 sales. eBay will notify you when you have reached these values. These values only relate to whether eBay is required to report your data. This doesn’t change your tax obligations or necessarily means that you must pay taxes on the amounts reported. Whether or which taxes are due because of your sales on eBay depends on your total sales activity, which is not limited to eBay.
Whether you are trading privately or commercially does not depend on reaching the values specified by DAC7/PStTG, based on which eBay must report your data. The question of whether you are acting commercially or whether tax obligations result from your sales activity depends on your sales activity as a whole. If you are unsure if your selling activity on eBay qualifies as private or commercial or if you have further questions regarding your tax obligations, please contact your tax advisor.
Top takeaway
If you are a seller residing in the EU and your sales in a calendar year exceed €2,000 or you have 30 transactions in that period, eBay is obliged to report certain information to the relevant tax authorities under DAC7/PStTG. Please enter your Tax Identification Number (TIN) when prompted to do so. DAC7/PStTG doesn’t change your existing, or create new tax obligations for you. To find out about your tax obligations, please reach out to a tax advisor.